Boston, MA 09/17/2014 (wallstreetpr) – Power generation operator, Atlantic Power Corp (NYSE:AT) has updated its strategic review process outcome. As a result, the company has named its Director, Ken Hartwick, as its interim President and Chief Executive Officer and dropped its plan to sell itself. On top of these, it has slashed its annual dividend rate by 70%. It has also reiterated its outlook for project adjusted EBITDA apart from free cash flow for the current year 2014.
To Remain Independent
The company disclosed that it has reviewed various options available before it on the possibility of a merger or sale, its press statement indicated. It has also hired financial advisors Goldman Sachs Group Inc (NYSE:GS) and Greenhill & Co., LLC to assist the company on the review process. As a result, its board has come to the conclusion that the company’s, as well as, shareholders’ interests would be served better by remaining independent.
The latest decision meant that Atlantic Power Corp (NYSE:AT) would continue to execute its plan of business, including maximizing investments to enhance its existing assets value besides commercial activities. It also intends to use its core competencies to create opportunities for proprietary investment.
While the company’s decision meant that it has dropped its sale proposal, it has indicated that it was willing to either sell assets or contribute assets for a joint venture aimed at increasing its capital for growth and also to cut down its debt.
Cuts Dividend Rate
The Atlantic Power Corp (NYSE:AT) was paying an annualized dividend rate of C$0.40 a share earlier. It has now slashed it by 70% to C$0.12 a share and moved towards quarterly dividend payment. As a result, its first quarterly dividend would be declared in November to be payable in December end.
The reduction in the dividend rate meant that it would pay C$0.03 a share for a quarter. The company indicated that it would pay its August dividend of C$0.03 as scheduled on September 30.
Names Interim CEO
Atlantic Power Corp (NYSE:AT) said that it has struck a mutual agreement with the current President and CEO, Barry Weltch. Accordingly, he will step down from the position, as well as, Director with immediate effect. In his place, its board has appointed its Director, Ken Hartwick, till it finds a replacement for Weltch.
The company has also reiterated its project adjusted EBITDA between $280 and $310 million for the current year 2014 besides free cash flow of $0 – $25 million.
